Page 135 - F3 -FA Integrated Workbook STUDENT 2018-19

Intangible assets

Intangible assets

1.1 Overview

IAS 38 Intangible Assets defines an intangible asset as 'an identifiable non-
monetary asset without physical substance' (IAS 38, para 8).

 An asset is identifiable if:

– it is separable, or

– it arises from contractual or other legal rights

 Intangible assets can be purchased or internally generated.

 As a general rule, purchased intangible assets are capitalised whereas
internally generated intangible assets are not recognised in the financial
statements.

 Examples of intangible assets include: goodwill, development costs, brands,
copyrights, licences and trademarks.

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